Wrapping up our “What in the Bleep is Going On?” week … Louis’ take on inflation and related market-positioning … join Louis for a special event next Wednesday
As part of the “What the Bleep is Going On?” segment we’ve been running all week in the Digest, I asked famed investor, Louis Navellier, what’s behind today’s current craziness.
He had a brief (and rather amusing) response:
A negative financial media that keeps acting like Chicken Little and predicting the sky is falling.
Ignore them, since they are just weenies and Momma’s Boys.
We should not listen to losers, unless you want to be manically depressed.
More from Louis in a moment…
First, if you’re just joining us here in the Digest, this week we’ve been highlighting a segment called “What the Bleep is Going On?”, in which we’ve turned to our analysts to help make sense of today’s crazy market conditions.
On Monday, our CEO, Brian Hunt, walked us through a laundry list of examples of market insanity, tying much of it back to the government’s printing trillions of dollars, which is flooding the economy. Though this is creating certain risks, Brian believes it’s also setting the stage for a massive boom in select, high-quality stocks.
On Tuesday, Eric Fry and Luke Lango stressed the importance of valuations. Instead of succumbing to herd mentality and piling into overvalued “hot” stocks, a focus on intrinsic value and growth is an effective way to navigate this crazy market.
We turned to John Jagerson on Wednesday. He recommended investors keep an eye on inflation, but suggested it’s currently not at dangerous levels. John urged caution in the tech sector, and said that industrial stocks and large retail/services companies look best for buy and hold strategies.
Yesterday, Matt McCall reminded readers that holding stocks during drawdowns is the hardest part of investing. Unfortunately, this is what’s required to make quadruple- or quintuple-digit, life-changing gains. Matt went on to say that the sector rotation that’s left tech underperforming in recent months is nothing to worry about, and tech will resume its place in the sun in time.
In today’s final installment of “What the Bleep is Going On?”, we turn to legendary growth investor, Louis Navellier.
Regular Digest readers know that Louis is highly bullish on fundamentally-strong stocks today. Given that, all the craziness and absurdities of this market are just background noise.
In Louis’ multi-decade career, he’s seen all sorts of market conditions, and the one constant has been that quantitatively-strong stocks climb the highest in good times, and bounce back the fastest in bad times.
Today, we’ll hear more from Louis. Then we’ll wrap up by putting a date on your calendar for next week – it’s a can’t-miss event with Louis in which he’ll be pulling back the curtain on his numbers-based market approach that’s created fortunes for his clients over the decades.
Let’s jump in.
***First-things-first…what’s Louis’ take on the bad inflation data from this week?
For newer Digest, readers, Louis is one of the early pioneers of using predictive algorithms to scour the markets for quantitatively-strong stocks. Forbes even named him the “King of Quants.”
This numbers-approach has helped him produce decades of triple-digit winners for his private clients and subscribers. Today, he’s one of the most respected, veteran analysts in the industry.
So, with this focus on data at the heart of Louis’ market approach, what’s his take on the inflation data from earlier this week?
From Louis’ Accelerated Profits market update podcast from Wednesday:
Well, the stock market did get up on the wrong side of the bed because of this bad inflation report we had.
But I do want to assure you that, so far, the sell-off is on light volume. And I know you’ve heard me say this before, but when the volume is light, I just don’t worry. Because it means there’s no panic-selling.
Even if inflation accelerates, Louis echoes a point that our CEO, Brian, made on Monday – namely, that certain stocks will do very well in an inflationary environment.
Back to Louis:
The “mean reversion” rally since September, where the worst performing stocks have done the best has built a new launching pad!
I expect that when folks realized that the stock market is a good inflation hedge and earnings are still accelerating, that the overall stock market will resurge.
***What about signs of market craziness? Is Louis thrown by any of today’s absurdities?
When I asked Louis about any prospective “What the Bleep is Going On?” stories that jump out to him, he pointed toward Elon Musk and his repeated endorsements of the altcoin, Dogecoin.
But in typical Louis fashion, he immediately reverted to what he knows best – cold, impartial numbers:
I think Elon Musk should pay more intention to Tesla and stop promoting Dogecoin, Bitcoin, and other cryptocurrencies.
The most shocking electric vehicle news this week was that Stellantis (formerly Chrysler Fiat & PSA before merger) announced it will no longer need to buy Tesla CO2 credits due to PSA’s technology, that would allow it to meet all European Union CO2 goals.
Since 2019, Chrysler Fiat & PSA (Citroen, Opel, Peugeot & Vauxhall vehicles) and have spent about $2.4 billion buying CO2 credits from Tesla.
Tesla reported $2.365 billion in “regulatory credits” and posted earnings of $1.407 billion since 2019. So now without the Stellantis’ CO2 credits, Tesla’s future earnings are in doubt, unless it boosts its manufacturing efficiency.
Again, Elon Musk should start fixing Tesla and stop hyping cryptocurrencies.
***So, what should investors do today in light of this What the Bleep market?
Louis’ answer is short and to-the-point…
Focus on stocks that boast quantifiable, earnings-based strength.
On that point, I want to alert you to a special, live event that Louis is holding next Wednesday May 19, at 4 PM ET.
At what he’s calling the Accelerated Wealth Summit, Louis is going to be walking attendees through his quant-based market approach. It’s the same one he uses to find fundamentally-superior stocks.
Here’s a brief snapshot of a few of the gains Louis has enjoyed using this system:
A 311% gain on Repligen…
A 457% gain on Holly Corp…
A 612% gain on Santarus…
A 751% gain on Vipshop Holdings…
And a 1,125% gain on Hansen Naturals.
I’ve spent the past 40 years perfecting my quantitative trading system.
This system helped me become a millionaire at 30… achieve the #1 ranking by the prestigious Hulbert Digest for my 20-year performance… and create a money management firm that at one point managed over $3 billion in assets.
My system has afforded me a life of luxury… including owning homes in both Palm Beach and Reno, a fleet of luxury cars, and a trust that’s big enough to take care of my family for generations to come.
Which is why I decided to set out on a different journey.
I decided to attack the wealth gap in America head on…and help as many people as I can.
Given this, at next Wednesday’s event, Louis will be walking attendees through the details of his system, and showing them how it could completely transform their own portfolios. It’s a free event. Just click here to reserve your seat.
Wrapping up, without doubt, we are living through fascinating times. We expect there will be many more “What the Bleep is Going On?” stories headed our way in the coming months. We’ll keep track of them for you here in the Digest.
Have a good evening,